Vega (See Chapter 29 of the Vernimmen) The vega can be defined as the rate of change in the derivative of the theoretical value of the option vis-à-vis implied volatility. All other factors being equal, the closer an option is to being in the money (with maximum time value), the greater is the impact of an increase in volatility. Vega (See Chapter 29 of the Vernimmen) The vega can be defined as the rate of change in the derivative of the theoretical value of the option vis-à-vis implied volatility. All other factors being equal, the closer an option is to being in the money (with maximum time value), the greater is the impact of an increase in volatility. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Vega" :

VAR VBI VWAP Value Value added Value and financial securities Value at risk Value creation

Value drivers Value of Business in Force Value stock Variable costs Variance Variance Swap Vega Venture capital

Volatility Volatility - bonds Volatility - dividends Volume growth Volume-weighted average price Vulture fund